Coinbase announced on Friday that a breakthrough agreement has been reached on the provisions on stablecoin yields, potentially resolving a months-long legislative impasse in the U.S. Senate.
The compromise addresses the controversial "rewards" feature, which previously blocked progress on the sweeping digital asset market structure legislation.
The legislative path is cleared for a vote on the market structure
The dispute centered around whether crypto exchanges should be allowed to offer customers rewards, similar to interest, for holding stablecoins.
Traditional banking institutions had actively lobbied for a complete ban on these incentives, citing concerns about "deposit outflows" where consumers might transfer capital from traditional bank accounts in favor of more lucrative digital assets.
Under the new deal, banks have secured stricter restrictions on crypto stablecoin rewards, although the fundamental ability for platforms to offer them remains intact.
Faryar Shirzad, Chief Policy Officer at Coinbase, noted that the agreement protects the rights of U.S. users to earn rewards based on genuine use of the platform and network.
The consensus is expected to advance a broader cryptocurrency market structure bill to a critical vote in the Senate Banking Committee.
The legislation aims to provide much-needed clarity by delineating the specific regulatory jurisdictions of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding the digital asset ecosystem.